Stockout situations for an online business are embarrassing resulting in
loss of customers as well as the loss of brand value. This is where the concept
of Dynamic Safety Stock Management comes into play.
Safety stock, as can be understood from the term, refers to the excess stock of
products, say, best-selling products, or seasonal in-demand products that a
business over-stocks with the purpose of using in case of over-demand or any
other unforeseen situation leading to a shortage of the said product.
Businesses that
operate in a highly competitive market need to be dynamic and active. To meet
the vibrancy in demand for their products, it is important to adopt futuristic
techniques akin to safety stock management.
Futuristic and pragmatic,
why! Because maintaining safety stocks has associated costs, like warehousing,
expiry, insurance, etc. and risks like the non-movement of the excess stock,
loss of liquidity, and so on. This is why it is always ideal to have a supply chain expert work on formalizing
and automating the logistics part of the business.
Issues with the
supply chain can be fatal for the business because it can directly impact sales
and revenues. Hence, it needs to be strategically handled and every attempt
should be made to remove bottlenecks and unrequired gaps in the systems.
What is challenging
is that there are no off-the-shelf generic supply chain solutions that one can
simply buy and plug into their business environment.
Every business is
different; and therefore, the need for each of them will differ. This means to
say that it is time that online sellers realize the importance of customized
supply chain solutions that is practical and realistic, effective, and
optimized.
Towards this end,
speaking to professional supply chain consulting firms can help in
complete mitigation of issues and setting up flawless inventory management,
warehouse management, shipping, and delivery management systems.
For
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